SANTA CLARA -- One of Silicon Valley's biggest ever development proposals -- a new metropolis that would shoot up across from the 49ers stadium -- is getting even bigger and now has a behemoth of a price tag to go with it.

The City Place Santa Clara project has grown from 5.2 million square feet when it was unveiled last year to about 8 million square feet, more than five times the size of Santana Row. And the privately-financed project will cost an estimated $6.5 billion -- roughly the cost of the new Bay Bridge eastern span -- up from $1.5 billion previously.

The details were released as the City Council on Tuesday night unanimously approved a deal with mega-developer Related to start the final phase of planning for the 215-acre mixed-use project that would give Santa Clara its downtown back after it was torn down in the 1950s and '60s.

Related, founded by Miami Dolphins owner Steve Ross, proposed the project in April 2013, as excitement swirled over the 49ers' $1.3 billion Levi's Stadium on the other side of Tasman Drive. The Related development, slated to be built on what is now a city-owned golf course and BMX track across from the stadium, would be the largest part of a new entertainment complex that would also include Joe Montana's separately-planned hotel and sports bar.

"Santa Clara is already on the map, but this is certainly going to put us way over the top," said City Manager Julio Fuentes.

The size of the development has increased about 50 percent strictly because of added density, largely for office space. That accounts for a portion of the price increase, while another $2 billion has been tacked on for inflation as the project gets built over the next 10 to 20 years.

Advertisement

The full City Place proposal is so big it would require seven phases of construction. In addition to offices, the development includes 30 restaurants, a 350-room hotel -- up from 200 rooms planned last year -- and 380 apartment units. There will be another 1 million square feet of shops, including two or three department stores, along with plans for a movie theater, a comedy or jazz club, a bowling alley and an arts performance center. A "European-style" arts district, parks and plazas are included, too.

The project is not without its critics. Golfers and BMX riders who use the golf course and track that would be wiped out from the development fear they won't get a replacement somewhere else in the city. Neighbors are concerned about traffic, parking and other quality-of-life issues stemming from such a big project. And organized labor groups worry the plans won't include union jobs.

"I think it'll be crippling -- I think it's going to be another half-baked project where all they're thinking about is the short-term," said Deborah Bress, a leader of the stadium opposition group called Santa Clara Plays Fair.

But the city is giddy because it expects to net about $23 million to $28 million in tax and rent revenues annually from the project over a 99-year lease -- nearly what it costs to pay for the city's police department each year. The city also gets $850 million in infrastructure spending from the developer to prepare the golf course, which sits over a landfill, for building.

The finished product would support an estimated 23,000 permanent employees, or about 9,000 more than what Apple's new Cupertino campus is expected to house. The workers' combined payroll would be about $1.6 billion annually.

"I am completely blown away by this project," said Mayor Jamie Matthews. "Anyone who says this is not a good thing needs to just walk out and get some fresh air."

The developer sees the location, between Highways 101 and 237 and Interstate 880, as a "hole in the retail doughnut" for the office park-lined area and wants to get started right away to take advantage of the boom in the Silicon Valley economy.

"Everything's teed up and ready to go," said developer Steve Eimer, a Related executive.

The city, meanwhile, is anxious to re-create a destination center after losing its downtown generations ago.

Erich Smith, general manager of the Hilton across from the stadium, notes that while his hotel is sold out on many 49ers game days this season, he has no idea where to tell out-of-town visitors to go for the rest of their stay.

"We believe it is a monumental change," Smith said of the project.

The contract approved Tuesday extends and revises an original negotiating deal the council approved with Related in February. After ironing out the final plans, the council is set to approve construction a year from now, with building expected to start in early 2016 -- around the time Super Bowl 50 comes to Levi's Stadium. The first phase would open in 2019, which Santa Clara officials say would help them win future Super Bowls for next decade.

Next month, the council also expects to vote on moving forward with the Montana project, and the stadium opens Aug. 2.